Financial Plan. Rona Birenbaum, CFP. PREPARED FOR: October 03, 2017 PREPARED BY: Financial Planner Viviplan Toronto, Ontario (416)

Transcription

1 Financial Plan PREPARED FOR: October 03, 2017 PREPARED BY: Rona Birenbaum, CFP Financial Planner Viviplan Toronto, Ontario (416)

2 Table of Contents Cover Page 1 Table of Contents 2 Objectives 3 Plan Synopsis Proposed 6 Retirement Goal Coverage 17 Retirement Capital Comparison 19 Current Plan 21 Cash Flow Outlook - Current Plan 22 Retirement Income & Expenses - Current Plan 25 Retirement Asset Accumulation & Depletion - Current Plan 27 Mrs. retires at Cash Flow Outlook - Proposed Plan 30 Retirement Income & Expenses - Proposed Plan 33 Retirement Asset Accumulation & Depletion - Proposed Plan 35 Invest cash 37 Cash Flow Outlook - Invest cash 38 Retirement Income & Expenses - Invest cash 41 Retirement Asset Accumulation & Depletion - Invest cash 43 Gift 20K to each daughter for 10 years 45 Cash Flow Outlook - Gift 20K to each child for 10 yrs 46 Retirement Income & Expenses - Gift 20K to each child for 10 yrs 49 Retirement Asset Accumulation & Depletion - Gift 20K to each child for 10 yrs 51 Recommendation and Action Plan 53 Recommendations 54 Disclaimer 56 Delivery Acknowledgement 57

3 Objectives For: Mr. and Mrs. Retirement Goal Objectives Concerns and objectives: Purchase a condo for investment and as potential future residence Assist two daughters, if needed Retire comfortably at age 65. Over the course of your financial planning process, we will help you assess your financial picture as we know it today. With the inclusion of some important assumptions, we will help you forecast what your future will look like in terms of the amount that you can spend throughout your retirement. We will also assess how to optimize your retirement cash flow such that you reduce your income tax obligation. The planning process is dynamic in nature. A financial plan that we create together now, will not necessarily be an accurate reflection of your future financial picture. The reason is because a lot will change over the course of your lives. We cannot predict the future, but what we can do is examine your options as we know them today and adjust your plan as you progress through your lives. Our goal now is to examine your current financial picture. We will walk through the assumptions that we have included in our projections. Based on the results, we will talk about what is possible for your longer term future. Assumptions: Life expectancy of 90. Retire at 65. Principal Residence valued at $800,000 (indexed at 3%). Vehicle currently $30K (purchased in 2016) Keep vehicles for 13 years. o Car maintenance expenses increase from $600/year to $1500/year after year 7 and until you replace the vehicle. New purchase vehicle 2029 (today's 30K will be $44,056) 4% and cash (as well as CIBC GIC joint) at 0.65%. Mrs. RRSP mainly GIC's. Used an average 2.75% for Mrs. RRSP instead of 4%. Income Mr.: Salary and bonus indexed at 1.5%, bonus CN Pension Mr.: Payable at (65) $2, per month with a 55% survivor benefit. 0% indexed Income Mr.: Salary and bonus indexed at 1.5%

4 Employer (ER) contributes to an RRSP Savings strategy per month to match employee (EE) contribution as follows: o ER is $202 o EE is $202 Pension Mr.: Unilever Canada Pension. You are unsure as to which option selected. For modelling purposes we illustrate Option 1 which is $724.13/month indexed with 60% survivor benefit. All lifestyle expenses indexed at 3%. Life Insurance: o Mrs. group insurance is 1.5 times salary o Mr. Term 10 London Life K080477T $250,000 premium $ ($542.5/12=$ ) till year June (age 63) then $4105 per year. o Mr. has a Life Premiums to 65 participating policy dated November Face value $2,700, cash value $5,861. o Mr. has a Jubilee whole life participating policy with coverage of $150K. o Mr. has a group insurance from Infrastructure Ontario. The benefit is $ STD and LTD (short and long term disability): o For Mr. zero cost, $8726/month maximum. So the $8726 is taxable if paid out. o For Mrs. STD zero cost, 100% salary for 30 weeks. Taxable benefit if paid out. o For Mrs. LTD zero cost, 60% salary indefinitely. Asked for the document. Secondary property details: You had mentioned that you might consider purchasing a condo for investment and as potential future residence when you downsize. The price $ ,000. You are intending to rent for approx. $1500 to your daughter and use that rent to carry a mortgage of approx. $320,000. Balance of purchase price would be paid in cash from savings. Estimated additional carrying costs of approx. $1,000 per month (maintenance fee + realty taxes). o We assumed purchase in August 2016 (because that's when a GIC matures). Included legal and tax costs. o Created asset of $600K this year (Aug 2016) including closing costs (legal and tax). Indexed at 3% o Mortgage of $320,000, payment 1500/month. Interest 4%. Bring into cash flow. Used $1521 as it pays the mortgage in 30 yrs. o Necessary to use $210K cash to close the property. Overall results: Current scenario: Above assumptions. Mr. and Mrs. retire at age 65. TFSA: o Mr. annual savings strategy of $5500/yr till death o Started Mrs. on a TFSA. Initial catch up $50K in 2017 o Mrs. annual saving strategy of $5500/yr till death (starting in 2018) All surpluses from cash flow are invested.

5 Invest cash: Same as current scenario but all investments are now earning 4% except for Mrs. RRSP and future TFSA. Kept those at GIC rate average of 2.75%. Weighted average return of overall portfolio 3.72% Mrs. retires early: Built on top of the invest cash scenario. Mrs. retires at 62 instead of 65. Mrs. will start Unilever Pension at age 65. CPP and OAS still at 65. Gift 20K to each daughter for 10 years: Built on top of Mrs. retires early. When Mrs. retires gift 20K each year to both daughters. Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

6 Plan Analysis Synopsis Plan Mrs. retires at age 62 - Proposed #2 (2016) General Information Detail Mr. Mrs. Birth Date Oct Aug Proposed Retirement Date Oct 2021 Aug 2017 Life Expectancy Dec 2046 Dec 2045 CPP/QPP Benefits Start On Nov 2021 Sep 2020 OAS Benefits Start On Nov 2021 Sep 2020 OAS Deferred Benefit Bonus 0.0% 0.0% Qualify for % of Max. CPP/QPP Benefits 100% 97% Qualify for % of OAS Benefits 100% 100% Earned Income (2015) $198,116 $62,559 Pension Adjustment (2015) $15,704 $0 Unused RRSP Deduction Room $8,622 $11,260 Tax Options The option Joint Election to Split Pension Income was selected. By selecting this option both clients have agreed to split their pension income for tax purposes. Assumptions Detail Income Tax Method Detailed Tax Inflation Rate 3.00% Marital Status Mr. Married Marital Status Mrs. Married Estate Assumptions Detail Gary Diane Is there a will? Yes - Revised: Jun 23 Yes - Revised: Jun Where are the wills kept? Safety Deposit box Dependents Name Birth Date Age as of Plan Date #1 Sep #2 Jul Dependant Of Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 1

7 Family Information Client Name Mr. Date of Birth Oct Gender Address Citizenship Canada Name Mrs. Date of Birth Aug Gender Female Address Citizenship Canada Dependants Professional Advisors Type Name Business Phone # Cell Phone # Advisor Rona Birenbaum (416) Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 2

8 Regular Income Income Source Member Applicable Amount Indexed Salary Mr. Jan to Sep $16,510/mo Inflation Salary Mrs. Jan to Jul $5,213/mo Inflation 1 RRSP ER contrib Mrs. Jan to Jul $202/mo No Taxable Benefits (LI and Mr. Jan to Sep $87/mo No AD&D) Taxable Benefits (LI) Mrs. Jan to Jul $45/mo No 1 Indexed annually by inflation % Defined Benefit Pension Plans - Estimate Benefit Description: CN Pension Annual Benefit: $30,231 Plan Owner: Mr. Indexed By: 3.00% Pct. Payable to Survivor: 55.00% Description: Unilever Canada Pension Annual Benefit: $8,690 Plan Owner: Mrs. Indexed By: 1.50% Pct. Payable to Survivor: 60.00% Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 3

9 Regular Expenses Expense Member Applicable Amount Indexed Fixed Expense Housing (e.g. utilities, Joint Jan to Jul $1,031/mo Inflation Yes repairs) Food Joint Jan to Jul $1,100/mo Inflation Yes Transportation (e.g. gas, Joint Jan to Jul $683/mo Inflation Yes insurance) Entertainment (e.g. Joint Jan to Jul $880/mo Inflation No restaurants, movies) Personal (e.g. clothing, Joint Jan to Jul $1,315/mo Inflation No hobbies) Other (e.g. travel) Joint Jan to Jul $1,000/mo Inflation No Charitable Donations - Joint Jan to Jul $120/mo Inflation Yes Fixed Lifestyle Expense Joint Jan to Jul $247/mo Inflation No Medical Joint Jan to Jul $60/mo Inflation Yes Union/Professional Dues Joint Jan to Dec $50/mo Inflation Yes Pet care Joint Jan to Jul $75/mo Inflation Yes Maintenance Car Yr 2016 Joint Jan to Dec $75/mo Inflation Yes Maintenance Car Yr 2029 Joint Jan to Dec $75/mo Inflation Yes Housing (e.g. utilities, Joint Aug to Dec $1,031/mo Inflation Yes repairs) Food Joint Aug to Dec $1,100/mo Inflation Yes Transportation (e.g. gas, Joint Aug to Dec $683/mo Inflation Yes insurance) Entertainment (e.g. Joint Aug to Dec $880/mo Inflation No restaurants, movies) Personal (e.g. clothing, Joint Aug to Dec $1,315/mo Inflation No hobbies) Other (e.g. travel) Joint Aug to Dec $1,000/mo Inflation No Charitable Donations - Joint Aug to Dec $120/mo Inflation Yes Fixed Lifestyle Expense Joint Aug to Dec $247/mo Inflation No Medical Joint Aug to Dec $60/mo Inflation Yes Pet care Joint Aug to Dec $75/mo Inflation Yes Lifestyle Assets Asset Name: Vehicle Asset Type: Personal Use Property Sale Date: Jan Owner: Joint Direct After Tax Proceeds To: Cash Flow Purchase Date: Dec Projected Value as of Sale Dates: Purchase Amount: $30,000 Before Tax: $1,752 Market Value: $30,000 After Tax: $1,493 Valuation Date: Apr Growth Rate: % Standard Deviation: % 1 The growth rate is a pre-tax amount Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 4

10 Asset Name: Principal Residence Asset Type: Principal Residence Sale Date: N/A Owner: Joint Direct After Tax Proceeds To: N/A Purchase Date: Dec Projected Value as of Sale Dates: Purchase Amount: $800,000 Before Tax: N/A Market Value: $800,000 After Tax: N/A Valuation Date: Apr Growth Rate: % Standard Deviation: 0.00% 1 The growth rate is a pre-tax amount Real Estate Assets Purchase Purchase Market Growth Net Rental Asset Name Date Amount Value Date Market Value Rate Income Real Estate (Joint) Aug $600,000 Sep $600, % $500 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 5

11 Portfolio Assets Market Value Goal Retirement Jan Cap. Def. Std. Annual Market Cost Int. Div. Gain Growth Dev. Total Account Income Value Base (%) (%) (%) (%) (%) (%) Fee (%) Reinvested $0 $ Yes Asset Name Life Insurance Proceeds (Joint/Non-Reg.) Cash (Joint/Non- Retirement Apr 21 $44,000 $44, Yes Reg.) 2016 Investment Retirement Apr 21 $130,810 $20, Yes (Mr./Non-Reg.) 2016 Non Registered Retirement Apr 21 $594,809 $594, Yes GIC (Joint/Non Reg.) Retirement Fund Retirement Jan 1 $0 $ Yes (Joint/Non-Reg.) 2016 GWL DCPP Retirement Apr 21 $286,724 $ Yes (Mr./RPP money purchase) RRSP Mrs. Retirement Apr 21 $374,128 $ Yes 2016 RRSP Mr. Retirement Apr 21 $253,157 $ Yes 2016 Retirement Fund Retirement Jan 1 $0 $ Yes (Mr./RRSP) 2016 Retirement Fund Retirement Jan 1 $0 $ Yes (Mrs./RRSP) 2016 Retirement Fund Retirement Jan 1 $0 $ Yes (Mrs./RRSP Spousal) Retirement Fund Retirement Jan 1 $0 $ Yes (Mr./RRSP Spousal) TFSA Mrs. Retirement Apr 21 $0 $ Yes 2016 TFSA Mr. Retirement Apr 21 $51,033 $51, Yes 2016 The Portfolio Assets table includes your major investment assets. It supplies the market value and cost basis of these assets. Your total pretax growth rate is broken down into specific return rate types, as some of these items receive special tax treatment. Interest is taxed as ordinary income at the marginal tax rate. Dividends receive preferential tax treatment, while one-half the capital gains are taxed at the marginal tax rate. Income from the deferred growth component is not subject to tax until the asset is sold and is usually taxed as a capital gain. The actual total return rates that you will receive will depend on many factors, including inflation, type of investment, market conditions and investment performance. Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 6

12 Life Insurance Policies Group Life Insurance Policy Type: Term 10 Life Owner: Mrs. Insured: Mrs. Death Benefit: $92,000 Beneficiary: Mr. Cash Surrender Value (CSV): $0 Premium Payer: Mrs. Premiums Cease On: Aug Annual Premium $0 Payments: CSV Payable With Death No Coverage Ceases On: Aug Benefit: Disability Waiver: No Group Life Insurance Policy Type: Term 10 Life Owner: Mr. Insured: Mr. Death Benefit: $158,000 Beneficiary: Mrs. Cash Surrender Value (CSV): $0 Premium Payer: Mr. Premiums Cease On: Oct Annual Premium $0 Payments: CSV Payable With Death No Coverage Ceases On: Never Benefit: Disability Waiver: No London Life Policy Type: Term 10 Life Owner: Mr. Insured: Mr. Death Benefit: $250,000 Beneficiary: Mrs. Cash Surrender Value (CSV): $0 Premium Payer: Mr. Premiums Cease On: Jun Annual Premium Payments: $540 CSV Payable With Death Benefit: No Coverage Ceases On: Jun Disability Waiver: No London Life Policy Type: Permanent Life Owner: Mr. Insured: Mr. Death Benefit: $2,700 Beneficiary: Other Cash Surrender Value (CSV): $5,861 Premium Payer: Mr. Premiums Cease On: Never Annual Premium Payments: $24 CSV Payable With Death Benefit: Yes Coverage Ceases On: Never Disability Waiver: No Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 7

13 Permanent Life Policy Type: Permanent Life Owner: Mr. Insured: Mr. Death Benefit: $150,000 Beneficiary: Mrs. Cash Surrender Value (CSV): $33,680 Premium Payer: Mr. Premiums Cease On: Never Annual Premium Payments: $672 CSV Payable With Death Benefit: No Coverage Ceases On: Never Disability Waiver: No Disability Insurance Policies Description: Group STD Policy Type: Group STD Insured: Effective Date: Company: Owner: Mrs. Policy #: Premium Payer: Mrs. Mrs. Dec Benefits are 100% of salary (tax-free). Benefits begin after 2 weeks and are paid until 30 weeks. Premiums are $0/month and end on Jul Description: Group LTD Policy Type: Group LTD Insured: Effective Date: Company: Owner: Mr. Policy #: Premium Payer: Mr. Mr. Dec Benefits are $8,726/month (taxable). Benefits begin after 3 months and are paid until age 65. Premiums are $0/month and end on Sep Description: Group LTD Policy Type: Group LTD Insured: Effective Date: Company: Owner: Mrs. Policy #: Premium Payer: Mrs. Mrs. Dec Benefits are 60% of salary (taxable). Benefits begin after 3 months and are paid until age 65. Premiums are $0/month and end on Jul Liabilities Liability Original Current Int. Liability Name Date End Date Principal Principal Rate Payment Type Linked to Asset Mortgage Aug Jul $320,000 $320, % Principal & Interest Real Estate Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 8

14 Regular Savings Strategies Asset Name Applicable Amount Indexed RRSP Mrs. Jan to Jul $405/month 0.0% TFSA Mr. Jan to Dec $458/month 0.0% GWL DCPP (Mr./RPP - money purchase) Jan to Sep Employee Contribution $0/month 0.0% Employer Contribution (5.00% of Salary) $825/month N/A 1 GWL DCPP (Mr./RPP - money purchase) Jan to Sep (2.50% of Salary) Employee Contribution (2.50% of Salary) $413/month N/A 1 Employer Contribution (2.50% of Salary) $413/month N/A 1 TFSA Mrs. Jan to Dec $458/month 0.0% 1 Indexing occurs if the salaries used in the calculations have been indexed. The table above includes all your periodic (annual or monthly) investment contributions. Lump-Sum Savings Strategies Asset Name Applicable Amount Indexed TFSA Mrs. Jan $50, % Lump sum savings represent planned savings that occur on a one time basis. Any lump sum savings planned for future years that are indexed by inflation will be increased accordingly - refer to your Action Plan in the appropriate years for the estimated savings amounts that will be required. Lump-Sum Asset Redemption Strategies Asset Name Applicable Amount Indexed Non Registered GIC (Joint/Non-Reg.) Aug $210,000 No Lump sum redemptions represent redemptions of your assets that do not occur on a regularly scheduled basis but rather occur on an as-needed basis. Any redemptions planned for future years that are indexed by inflation will be increased accordingly - refer to your Action Plan to view the amounts to be transferred for the next three years. RRSP Maximizer Savings Strategies Asset Name Applicable Constrained by Cash Flow Time of Year RRSP Mr. Jan to Sep Yes January RRSP Mrs. Jan to Jul Yes January The maximum allowable RRSP contribution for a particular taxpayer in a particular year depends on factors such as earned income for the prior year, pension adjustments and any RRSP carryforward room that the taxpayer has available. Even with the regular RRSP contributions under your regular savings strategy, there is room for additional contributions. Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 9

15 The RRSP maximizer strategies listed above will project the maximum contributions you can make on an annual basis, based on the assumptions in this plan. If the constrained by cash flow option is YES then the recommended contributions will take into consideration whether your available cash flow in each year is sufficient to fund the maximum contributions you are allowed to make. Surplus Savings Strategies (Regular Cash Flow) Asset Name Applicable % of Surplus Non Registered GIC (Joint/Non-Reg.) Jan to Dec % You may still have surplus cash available for investment, after having established a regular savings program and/or maximized your RRSP contributions. Surplus savings strategies specify how unallocated surplus cash is to be invested each year. Unallocated surplus cash may change from year to year based on changes in your incomes and expenses. Your Action Plan will provide the estimated savings on a yearly basis for these savings strategies. The surplus savings strategies assume that you will invest surplus cash and not spend it on current needs or desires. Be sure to review your plan annually with your financial advisor to determine if these investments are occurring according to plan. If not, your plan should be revised and new projections should be prepared to reflect a realistic savings strategy. Transfer Strategies Source Asset Destination Asset Amount When Group Life Insurance Life Insurance Proceeds 100% Upon Death Transfers specify a plan for moving your investments from one type of asset to another on specific dates or events such as retirement. Also, transfers will be desirable in some cases to move from one type of investment to another type at a certain point in time. Refer to your Action Plan for the years in which transfers are scheduled to view the amounts to be transferred. Deficit Coverage Order for Pre-Retirement Description Account Type Owner Cash Non-Registered Joint Non Registered GIC Non-Registered Joint Investment Non-Registered Gary The assets listed are available and will be redeemed in the order they appear to meet cash flow needs during the pre-retirement period. Order: Non-Registered. Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 10

16 Liquidation Order During Retirement Asset Name Account Type Owner Applicable Non Registered GIC Non-Registered Joint Aug to Dec Cash Non-Registered Joint Aug to Dec Investment Non-Registered Mr. Oct to Dec TFSA Mrs. TFSA Mrs. Aug to Dec TFSA Mr. TFSA Mr. Oct to Dec RRSP Mr. RRSP Mr. Oct to Dec GWL DCPP RPP - money purchase Mr. Oct to Dec RRSP Mrs. RRSP Mrs. Aug to Dec The assets listed are available, and will be liquidated in the order they appear, for redemption to meet cash flow needs during the retirement period. No assets have been set aside to cover the emergency expense. Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. 11

17 Retirement Goal Coverage This report shows progress towards the retirement goal. That is, your ability to cover expenses, pay taxes, and maintain discretionary spending during your retirement. The chart to the right compares your current situation to the proposed scenario. RETIREMENT GOAL COVERAGE Current - 100% Mrs. ret. 62 STRONG 100% PARTIAL INSUFFICIENT The table below contains a comparison of assumptions, needs, and other goals in both the current situation and in all other situations. 100% Assumptions Current Plan Mrs. retires at 62 Invest cash Gift 20K to each child for 10 yrs Retirement Age Mr. /Mrs. 65 (2021) / 65 (2020) 65 (2021) / 62 (2017) 65 (2021) / 65 (2020) 65 (2021) / 62 (2017) Life Expectancy Mr. / Mrs. 90 (2046) / 90 (2045) 90 (2046) / 90 (2045) 90 (2046) / 90 (2045) 90 (2046) / 90 (2045) Inflation Rate 3.00% 3.00% 3.00% 3.00% 1st Year Retirement Needs* $128,847 $128,847 $128,847 $128,847 Assets Funding Retirement $1,734,661 $1,734,661 $1,734,661 $1,734,661 Current Monthly Savings $2,514 $2,514 $2,514 $2,514 Non-Reg. Additional Monthly Savings $0 $0 $0 $0 Savings Start Date (Index) 2016/05/01 (0.00%) 2016/05/01 (0.00%) 2016/05/01 (0.00%) 2016/05/01 (0.00%) Reg. Additional Monthly Savings Savings Start Date (Index) 2016/05/01 (0.00%) 2016/05/01 (0.00%) 2016/05/01 (0.00%) 2016/05/01 (0.00%) RRSP $0 / $0 $0 / $0 $0 / $0 $0 / $0 RRSP Spousal $0 / $0 $0 / $0 $0 / $0 $0 / $0 TFSA $0 / $0 $0 / $0 $0 / $0 $0 / $0 Additional Lump Sum Savings $0 $0 $0 $0 Savings Date 2016/05/ /05/ /05/ /05/01 Pre-Retirement Rate of Return 2.50% 3.72% 3.72% 3.72% Retirement Rate of Return 2.50% 3.72% 3.72% 3.72% Plan Overview Net Worth at Retirement $3,478,588 $2,894,133 $3,547,806 $2,894,133 Net Worth at Plan End $5,746,875 $6,145,597 $6,498,387 $5,121,114 Year of First Shortfall Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations. * = Today's Dollars

18 Retirement Capital Comparison This report displays changes to the value of your retirement assets over your retirement. These assets include all registered and non-registered assets allocated to fund your retirement goals. This report also displays the date for major events in the plan to help better show how these events affect the value of retirement assets. Note: The values for retirement assets shown in this report are year end values. Current Plan Non-Registered GWBs Registered GWBs Non-Registered Assets Retirement Withdrawal Rate for % Registered Assets $3,000,000 $500,000 Mrs. retires at 62 Plan Non-Registered GWBs Registered GWBs Non-Registered Assets Retirement Withdrawal Rate for % Registered Assets $3,000,000 $500,000 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

19 Retirement Capital Comparison Continued Invest cash Non-Registered Assets $3,000,000 Registered Assets Retirement Withdrawal Rate for % $500,000 Gift 20K to each child for 10 yrs Retirement Withdrawal Rate for % Non-Registered Assets Registered Assets $500,000 $0 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

20 Current Plan

21 Cash Flow Outlook Current Plan This report projects detailed cash flow information over the next five years. Cash inflows and outflows are categorized by source and summarized as aggregate totals. This provides an overview of your cash flow projections. Year 2016 Age 60/ / / / /65* Cash Inflows Earned Income Salary $198,116 $204,059 $210,181 $216,487 $222,981 Salary $62,559 $63,497 $64,450 $65,417 $38,732 Taxable Benefits (LI and AD&D) $1,043 $1,043 $1,043 $1,043 $1,043 Taxable Benefits (LI) $543 $543 $543 $543 $317 Total $262,261 $269,143 $276,217 $283,489 $263,073 CPP/QPP & OAS OAS $0 $0 $0 $0 $2,569 CPP/QPP $0 $0 $0 $0 $4,696 Total $0 $0 $0 $0 $7,264 Pensions Unilever Canada Pension $0 $0 $0 $0 $3,843 Total $0 $0 $0 $0 $3,843 Non-Registered Proceeds Non Registered GIC $210,000 $0 $0 $0 $0 Total $210,000 $0 $0 $0 $0 Investment Income Real Estate $6,000 $18,000 $18,000 $18,000 $18,000 Cash $215 $287 $289 $291 $293 Investment $2,943 $4,042 $4,204 $4,372 $4,547 Non Registered GIC $1,878 $2,530 $2,608 $2,884 $3,292 Total $11,036 $24,860 $25,101 $25,547 $26,132 Miscellaneous Income RRSP ER contrib $2,427 $2,427 $2,427 $2,427 $1,416 Mortgage $320,000 $0 $0 $0 $0 Total $322,427 $2,427 $2,427 $2,427 $1,416 Total Cash Inflows $805,724 $296,430 $303,745 $311,463 $301,728 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

22 Year 2016 Age 60/ / / / /65* Cash Outflows Lifestyle Expenses Housing (e.g. utilities, repairs) $12,372 $12,743 $13,125 $13,519 $13,925 Food $13,200 $13,596 $14,004 $14,424 $14,857 Transportation (e.g. gas, insura... $8,196 $8,442 $8,695 $8,956 $9,225 Pet care $900 $927 $955 $983 $1,013 Mortgage $7,608 $18,260 $18,260 $18,260 $18,260 Entertainment (e.g. restaurants... $10,560 $10,877 $11,203 $11,539 $11,885 Personal (e.g. clothing, hobbies) $15,780 $16,253 $16,741 $17,243 $17,761 Other (e.g. travel) $12,000 $12,360 $12,731 $13,113 $13,506 Lifestyle Expense $2,964 $3,053 $3,145 $3,239 $3,336 Total $83,580 $96,511 $98,859 $101,277 $103,767 Medical Expenses Medical $720 $742 $764 $787 $810 Total $720 $742 $764 $787 $810 Registered Contributions RRSP Mr. $4,512 $19,359 $7,000 $6,576 $6,773 RRSP Mrs. $4,860 $4,860 $35,381 $11,544 $11,716 TFSA Mr. $5,496 $5,496 $5,496 $5,496 $5,496 GWL DCPP $4,953 $5,101 $5,255 $5,412 $5,575 TFSA Mrs. $0 $50,000 $5,496 $5,496 $5,496 Total $19,821 $84,816 $58,627 $34,524 $35,056 Non-Registered Contributions Real Estate $600,000 $0 $0 $0 $0 Total $600,000 $0 $0 $0 $0 Non-Registered Savings Cash $215 $287 $289 $291 $293 Investment $2,943 $4,042 $4,204 $4,372 $4,547 Non Registered GIC $1,878 $2,530 $2,608 $2,884 $3,292 Total $5,036 $6,860 $7,101 $7,547 $8,132 Employment Expenses CPP/QPP Contributions - Empl... $5,089 $5,252 $5,420 $5,593 $4,645 EI Premiums $1,910 $1,967 $2,026 $2,087 $1,809 Taxable Benefits (LI and AD&D) $1,043 $1,043 $1,043 $1,043 $1,043 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

23 Year 2016 Age 60/ / / / /65* Taxable Benefits (LI) $543 $543 $543 $543 $317 Union/Professional Dues $600 $618 $637 $656 $675 Total $9,185 $9,423 $9,669 $9,921 $8,489 Investment Expenses Real Estate $4,000 $12,000 $12,000 $12,000 $12,000 Total $4,000 $12,000 $12,000 $12,000 $12,000 Miscellaneous Expenses Charitable Donations - Fixed $1,440 $1,483 $1,528 $1,574 $1,621 London Life $540 $540 $540 $540 $225 Permanent Life $672 $672 $672 $672 $672 London Life $24 $24 $24 $24 $24 Total $2,676 $2,719 $2,764 $2,810 $2,542 Taxes Federal Income Tax $49,170 $46,446 $45,942 $51,593 $48,651 Provincial Income Tax $29,371 $27,498 $28,156 $31,132 $30,189 Total $78,541 $73,944 $74,098 $82,725 $78,840 Surplus Outflows Non Registered GIC $2,165 $9,415 $39,864 $59,874 $52,092 Total $2,165 $9,415 $39,864 $59,874 $52,092 Total Cash Outflows $805,724 $296,430 $303,745 $311,463 $301,728 Surplus/(Deficit) $0 $0 $0 $0 $0 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

24 Retirement Income & Expenses Current Plan This report shows your annual cash flow during the retirement period, for the selected scenario. Positive cash flow values are shown in bold whereas negative values are shown in red and in parentheses. Use this report to show detailed cash flow information and thereby demonstrate the underlying numbers that comprise the year-over-year cash flow graphs. Year Age CPP/QPP & OAS Defined Benefit Pension Earned Income Minimums Non-Registered Proceeds Other Inflows Fixed Needs (incl. taxes) Total Needs (incl. taxes) Shortfall /65* $7,264 $3,843 $263,073 $0 $18,000 $1,416 $195,016 $241, *65/66 $26,271 $16,919 $173,035 $0 $18,000 $0 $159,060 $206, /67 $46,756 $39,733 $0 $0 $60,366 $0 $97,535 $146, /68 $48,158 $39,876 $0 $0 $61,625 $0 $98,860 $149, /69 $49,603 $40,020 $0 $0 $63,223 $0 $100,524 $152, /70 $51,091 $40,167 $0 $0 $64,561 $0 $101,927 $155, /71 $52,624 $40,316 $0 $0 $65,940 $0 $103,370 $158, /72 $54,202 $40,467 $0 $60,814 $24,867 $0 $123,177 $180, /73 $55,829 $40,621 $0 $86,800 $18,000 $0 $133,026 $191, /74 $57,503 $40,777 $0 $87,155 $51,163 $1,752 $177,694 $238, /75 $59,228 $40,935 $0 $87,514 $18,000 $0 $134,911 $197, /76 $61,005 $41,096 $0 $87,859 $18,000 $0 $136,594 $200, /77 $62,836 $41,258 $0 $88,171 $18,000 $0 $138,299 $204, /78 $64,720 $41,424 $0 $88,531 $18,000 $0 $140,064 $208, /79 $66,662 $41,592 $0 $88,952 $18,000 $0 $141,896 $212, /80 $68,662 $41,762 $0 $89,255 $18,000 $0 $143,736 $216, /81 $70,722 $41,935 $0 $89,648 $19,573 $0 $147,279 $221, /82 $72,844 $42,111 $0 $89,988 $21,320 $0 $149,426 $226, /83 $75,029 $42,289 $0 $90,316 $23,146 $0 $151,637 $230,780 - Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

25 Year Age CPP/QPP & OAS Defined Benefit Pension Earned Income Minimums Non-Registered Proceeds Other Inflows Fixed Needs (incl. taxes) Total Needs (incl. taxes) Shortfall /84 $77,280 $42,470 $0 $90,702 $24,987 $0 $153,921 $235, /85 $79,598 $42,653 $0 $91,024 $26,927 $0 $156,240 $240, /86 $81,986 $42,840 $0 $91,357 $28,917 $0 $158,618 $245, /87 $84,446 $43,029 $0 $91,712 $91,285 $2,422 $223,818 $312, /88 $86,979 $43,221 $0 $91,984 $30,980 $0 $161,415 $253, /89 $89,588 $43,416 $0 $92,294 $33,123 $0 $163,920 $258, /90 $94,776 $43,613 $0 $92,617 $33,644 $0 $167,315 $264, /- $50,547 $38,381 $0 $90,685 $81,825 $0 $161,182 $261,438 - * = year of retirement Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

26 Retirement Asset Accumulation & Depletion Current Plan This report displays a yearly summary of changes to the value of retirement assets for the selected scenario. Additionally, all other (non-retirement) assets are shown in the EOY Other Assets column in order to show the potential for additional ability to cover spending needs. Year Age SOY Assets 1 Growth & Contributions 2 Withdrawals 3 Withdrawal EOY Assets 4 EOY Other Reinvestments Rate Assets /61 $1,734,661 $20,217 $36,845 $210, % $1,581,723 $1,488, /62 $1,581,723 $46,707 $109,535 $0 0.0% $1,737,965 $1,526, /63 $1,737,965 $50,775 $114,255 $0 0.0% $1,902,995 $1,566, /64 $1,902,995 $54,606 $110,634 $0 0.0% $2,068,235 $1,608, /65* $2,068,235 $58,781 $103,872 $0 0.0% $2,230,887 $1,652, *65/66 $2,230,887 $62,699 $62,477 $0 0.0% $2,356,063 $1,698, /67 $2,356,063 $65,658 $10,992 $42, % $2,390,347 $1,746, /68 $2,390,347 $67,871 $10,992 $43, % $2,425,585 $1,796, /69 $2,425,585 $70,163 $10,992 $45, % $2,461,517 $1,847, /70 $2,461,517 $72,535 $10,992 $46, % $2,498,483 $1,900, /71 $2,498,483 $74,991 $10,992 $47, % $2,536,526 $1,955, /72 $2,536,526 $76,430 $10,992 $67, % $2,556,267 $2,012, /73 $2,556,267 $76,738 $20,325 $86, % $2,566,531 $2,071, /74 $2,566,531 $76,808 $10,992 $120, % $2,534,014 $2,165, /75 $2,534,014 $76,405 $19,283 $87, % $2,542,188 $2,221, /76 $2,542,188 $76,431 $18,007 $87, % $2,548,768 $2,280, /77 $2,548,768 $76,434 $16,677 $88, % $2,553,708 $2,342, /78 $2,553,708 $76,414 $15,334 $88, % $2,556,925 $2,407, /79 $2,556,925 $76,367 $13,985 $88, % $2,558,325 $2,475, /80 $2,558,325 $76,295 $12,509 $89, % $2,557,874 $2,545, /81 $2,557,874 $76,195 $10,992 $91, % $2,553,840 $2,618, /82 $2,553,840 $76,056 $10,992 $93, % $2,547,580 $2,694, /83 $2,547,580 $75,884 $10,992 $95, % $2,538,993 $2,772,605 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

27 Year Age SOY Assets 1 Growth & Contributions 2 Withdrawals 3 Withdrawal EOY Assets 4 EOY Other Reinvestments Rate Assets /84 $2,538,993 $75,618 $10,992 $97, % $2,527,914 $2,853, /85 $2,527,914 $75,254 $10,992 $99, % $2,514,209 $2,937, /86 $2,514,209 $74,785 $10,992 $102, % $2,497,713 $3,023, /87 $2,497,713 $74,205 $10,992 $164, % $2,417,913 $3,162, /88 $2,417,913 $73,167 $10,992 $104, % $2,397,108 $3,243, /89 $2,397,108 $72,478 $10,992 $107, % $2,373,161 $3,330, /90 $2,373,161 $71,733 $10,992 $108, % $2,347,624 $3,421, /- $2,347,624 $70,893 $5,496 $154, % $2,269,503 $3,477,371 1 SOY denotes start of year. 2 Includes all additional funds added to assets funding the retirement goal. 3 Includes all assets removed from the assets funding the retirement goal. 4 Denotes end of year assets allocated to the retirement goal. * = year of retirement Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

28 Mrs. retires at 62

29 Cash Flow Outlook Mrs. retires at 62 Plan This report projects detailed cash flow information over the next five years. Cash inflows and outflows are categorized by source and summarized as aggregate totals. This provides an overview of your cash flow projections. Year 2016 Age Gary/Diane 60/ /62* / / /65 Cash Inflows Earned Income Salary $198,116 $204,059 $210,181 $216,487 $222,981 Salary $62,559 $37,040 $0 $0 $0 Taxable Benefits (LI and AD&D) $1,043 $1,043 $1,043 $1,043 $1,043 Taxable Benefits (LI) $543 $317 $0 $0 $0 Total $262,261 $242,459 $211,224 $217,530 $224,024 CPP/QPP & OAS OAS $0 $0 $0 $0 $2,569 CPP/QPP $0 $0 $0 $0 $4,696 Total $0 $0 $0 $0 $7,264 Pensions Unilever Canada Pension $0 $0 $0 $0 $3,843 Total $0 $0 $0 $0 $3,843 Non-Registered Proceeds Non Registered GIC $210,000 $0 $0 $0 $0 Total $210,000 $0 $0 $0 $0 Investment Income Real Estate $6,000 $18,000 $18,000 $18,000 $18,000 Cash $970 $1,330 $1,379 $1,430 $1,484 Investment $2,884 $3,953 $4,100 $4,253 $4,411 Non Registered GIC $8,536 $11,734 $12,156 $12,874 $13,664 Total $18,390 $35,017 $35,636 $36,557 $37,559 Miscellaneous Income RRSP ER contrib $2,427 $1,416 $0 $0 $0 Mortgage $320,000 $0 $0 $0 $0 Total $322,427 $1,416 $0 $0 $0 Total Cash Inflows $813,078 $278,892 $246,860 $254,087 $272,690 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

30 Year 2016 Age 60/ /62* / / /65 Cash Outflows Lifestyle Expenses Housing (e.g. utilities, repairs) $12,372 $7,434 $0 $0 $0 Food $13,200 $7,931 $0 $0 $0 Transportation (e.g. gas, insura... $8,196 $4,924 $0 $0 $0 Pet care $900 $541 $0 $0 $0 Housing (e.g. utilities, repairs) $0 $5,310 $13,125 $13,519 $13,925 Food $0 $5,665 $14,004 $14,424 $14,857 Transportation (e.g. gas, insura... $0 $3,517 $8,695 $8,956 $9,225 Pet care $0 $386 $955 $983 $1,013 Mortgage $7,608 $18,260 $18,260 $18,260 $18,260 Entertainment (e.g. restaurants... $10,560 $6,345 $0 $0 $0 Personal (e.g. clothing, hobbies) $15,780 $9,481 $0 $0 $0 Other (e.g. travel) $12,000 $7,210 $0 $0 $0 Lifestyle Expense $2,964 $1,781 $0 $0 $0 Entertainment (e.g. restaurants... $0 $4,532 $11,203 $11,539 $11,885 Personal (e.g. clothing, hobbies) $0 $6,772 $16,741 $17,243 $17,761 Other (e.g. travel) $0 $5,150 $12,731 $13,113 $13,506 Lifestyle Expense $0 $1,272 $3,145 $3,239 $3,336 Total $83,580 $96,511 $98,859 $101,277 $103,767 Medical Expenses Medical $720 $433 $0 $0 $0 Medical $0 $309 $764 $787 $810 Total $720 $742 $764 $787 $810 Registered Contributions RRSP $1,842 $0 $18,240 $17,364 $6,773 RRSP $4,860 $2,835 $0 $0 $0 TFSA $5,496 $5,496 $5,496 $5,496 $5,496 TFSA $0 $50,000 $5,496 $5,496 $5,496 GWL $4,953 $5,101 $5,255 $5,412 $5,575 Total $17,151 $63,432 $34,486 $33,769 $23,340 Non-Registered Contributions Real Estate $600,000 $0 $0 $0 $0 Total $600,000 $0 $0 $0 $0 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.

31 Year 2016 Age 60/61 Non-Registered Savings /62* / / /65 Cash $970 $1,330 $1,379 $1,430 $1,484 Investment $2,884 $3,953 $4,100 $4,253 $4,411 Non Registered GIC $8,536 $11,253 $12,156 $12,874 $13,664 Total $12,390 $16,536 $17,636 $18,557 $19,559 Employment Expenses CPP/QPP Contributions - Empl... $5,089 $4,302 $2,710 $2,796 $2,885 EI Premiums $1,910 $1,686 $1,013 $1,044 $1,075 Taxable Benefits (LI and AD&D) $1,043 $1,043 $1,043 $1,043 $1,043 Taxable Benefits (LI) $543 $317 $0 $0 $0 Union/Professional Dues $600 $618 $637 $656 $675 Total $9,185 $7,965 $5,403 $5,539 $5,679 Investment Expenses Real Estate $4,000 $12,000 $12,000 $12,000 $12,000 Total $4,000 $12,000 $12,000 $12,000 $12,000 Miscellaneous Expenses Charitable Donations - Fixed $1,440 $865 $0 $0 $0 Charitable Donations - Fixed $0 $618 $1,528 $1,574 $1,621 London Life $540 $540 $540 $540 $225 Permanent Life $672 $672 $672 $672 $672 London Life $24 $24 $24 $24 $24 Total $2,676 $2,719 $2,764 $2,810 $2,542 Taxes Federal Income Tax $51,542 $49,134 $40,755 $42,430 $47,161 Provincial Income Tax $30,866 $29,853 $25,157 $26,347 $29,160 Total $82,409 $78,986 $65,912 $68,777 $76,321 Surplus Outflows Non Registered GIC $967 $0 $9,037 $10,572 $28,673 Total $967 $0 $9,037 $10,572 $28,673 Total Cash Outflows $813,078 $278,892 $246,860 $254,087 $272,690 Surplus/(Deficit) $0 $0 $0 $0 $0 Important: The calculations or other information generated by NaviPlan version 16.0 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. If included, fees and other operating expenses would materially reduce these calculations.